EnQuest EP, a subsidiary of London Stock Exchange-listed energy player EnQuest, has secured a production sharing agreement (PSA) for Block C, covering three offshore fields in Brunei Darussalam, for which a final investment decision (FID) is anticipated to be reached within the next two years.
As the Petroleum Authority of Brunei Darussalam (PABD) has awarded EnQuest with a PSA for Block C, the company’s subsidiary will initially be the sole operator with the intention to subsequently, subject to contract, form a 50/50 joint venture company (JVC) with Brunei Energy Exploration (BEE).
After being established, the JVC will assume the role of operator for Block C and focus on finalizing the Merpati field development plan to achieve the FID within two years, starting the capital project in 2027, with first gas expected in 2029.
Amjad Bseisu , CEO of EnQuest, commented: “We are excited to embark on this new country entry with Brunei Darussalam. EnQuest is committed to fulfilling the responsibilities entrusted to us and we will leverage our experienced workforce and differentiated operating capability to deliver the project safely and efficiently.
“This opportunity aligns with our strategy to diversify our portfolio into gas and expand our presence in South East Asia following two significant recent transactions to enhance our production in Malaysia and our acquisition of Block 12W in Vietnam from Harbour Energy.”
Located offshore Brunei Darussalam, Block C is described as hosting the condensate-rich gas discovered fields of Merpati, Meragi , and Juragan , whichEnQuest intends to develop in stages, beginning with the first one.
The company explains that the produced gas and liquids from the fields are targeted for use in the domestic market and the Brunei LNG plant, which supplies the international LNG markets. There is increasing attention on the long-term potential of natural gas, particularly LNG exports in the country.
Bseisu added: “Our established presence in the region and operating expertise built up in Malaysia and the UK North Sea will be invaluable in supporting this project and future ventures in Brunei Darussalam. We are eager to continue fostering this relationship and to explore further opportunities with Brunei Darussalam.”
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Block C is perceived to be strategically situated to take advantage of the country’s well-developed infrastructure for oil and gas operations, including modern refineries, LNG export terminals, and a robust pipeline network.